Copper futures rally to six-week high over rising demand in China
Source: www.chinamining.org Citation: Global Times Date: March 2, 2015
Copper futures in Shanghai advanced considerably Friday thanks to bullish expectations of a rise in Chinese demand in the post-holiday period.
The most traded copper contract on the Shanghai Futures Exchange (SHFE), for May delivery, closed at 42,730 yuan ($6,816) per ton Friday, up 540 yuan or 1.28 percent from the previous day. At one point during trading, the contract surged above the psychologically important 43,000-yuan mark, representing a new high in six weeks and up nearly 10 percent from the low point registered at the end of January.
Meanwhile, three-month copper on the London Metal Exchange (LME) climbed 0.1 percent to close at $5,895 per ton Friday, after surging 2.2 percent Thursday and hitting a six-week high of $5,944. On a monthly basis, LME copper registered a remarkable 7 percent increase in February, the biggest monthly gain since September 2012.
"Copper prices are at a six-week high following strong US durable goods data and on speculation of more accommodating government policies in China to stimulate economic growth," the Australia and New Zealand Banking Group said in a research note sent to the Global Times.
Investors have been generally bullish, expecting a recovery in copper prices in the run-up to the seasonally strong second quarter.
Nevertheless, a report from Hongyuan Futures pointed out that factors supporting the price rebound in February are mainly temporary, as the copper market is expected to trend downward in the medium to long term.
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